Animoca Brands Wins Key ADGM Approval in Major Middle East Expansion

The approval was disclosed in the company’s official announcement, which emphasized that the IPA marks a significant step in its strategy to expand institutional-grade investment capabilities within a regulated framework.

Animoca Brands said its overall business is based on three interconnected pillars: Web3 businesses advancing blockchain adoption, advisory services for digital-asset strategies, and investment management supported by a portfolio of over 600 companies. The new in-principle approval directly supports the investment-management pillar by paving the way for Animoca to operate a regulated fund-management entity within ADGM, subject to fulfillment of FSRA's remaining conditions and the granting of a full Financial Services Permission.

ADGM, located on Abu Dhabi’s Al Maryah Island, is an international financial center hosting a growing ecosystem of digital-asset and fintech licenses. Its regulatory process for financial-services providers typically includes a preliminary assessment, business-plan submission, regulatory review, issuance of an IPA with conditions and, finally, full authorization once a firm meets capital, staffing, governance, systems and compliance requirements. This structure has made ADGM an increasingly attractive base for companies involved in digital-asset funds, tokenized vehicles and Web3-focused investment strategies.

For Animoca Brands, the green light cements its institutional standing at a time when the Middle East-in particular, the UAE-has ramped up its efforts to position itself as a global hub for blockchain, tokenization, and digital assets innovation. By placing regulated operations in ADGM, the company is signaling a commitment to standards of governance and compliance relevant to institutional investors, family offices, sovereign wealth funds, and financial institutions across the Gulf. This puts Animoca in a position to raise and manage capital within a framework that is widely recognized by major global regulators and cross-border financial institutions.

The IPA itself does not yet authorize the company to commence regulated activity. First, Animoca will have to meet all conditions prescribed by FSRA, which generally include regulatory capital, local premises, governance structures, the integration of AML/CTF controls, and full operational readiness. While the company did not disclose the conditions or timeline for getting its final Financial Services Permission, the pathway traditionally requires firms to demonstrate that they can meet ongoing supervisory obligations and adhere to FSRA’s rulebook on fund-management functions, such as valuation, conflicts management, outsourcing oversight, disclosures, and record-keeping.

Even with these requirements ahead, the move reflects a broader shift among Web3 and digital-asset firms seeking regulated-entity status in jurisdictions with well-developed regulatory infrastructure. As the industry matures, companies that once operated in primarily venture-style or unregulated environments are increasingly finding themselves aligning with structured regulatory regimes to support institutional engagement, cross-border fundraising, and long-term sustainability. The UAE's expanding digital-assets strategy, which includes both ADGM and the Dubai International Financial Centre (DIFC), has heightened the region's appeal for firms that want regulatory clarity while still benefiting from a pro-innovation policy environment.

The strategic implications go beyond mere compliance. With a regulated entity in ADGM, Animoca Brands may create investment funds domiciled in the jurisdiction and further develop new vehicles based on tokenized assets, Web3 equity, or other blockchain-focused investment products. Institutional investors looking to gain exposure to digital-assets infrastructure, gaming-related blockchain projects, tokenization technologies, and metaverse economy builders-those areas in which Animoca has significant investments and holdings-may well find that a regulated ADGM fund offers greater clarity on how to participate.

The company's announcement suggests that, going forward, institutional-grade structuring will play a central role in how Web3 firms access capital and scale globally. For the wider digital-asset ecosystem, this is a sign that traditional fund-management jurisdictions are opening their doors to blockchain-native operators, so long as they incorporate governance frameworks akin to those deployed in mainstream finance. This interplay between innovation and regulation continues to define the next phase of growth for digital assets, one in which companies are expected not only to build new technologies but also to operate in environments satisfying investors, counterparties and regulatory stakeholders.

The in-principle approval for Animoca Brands is a substantial marker in this evolution. Although final authorization remains pending, the milestone underlines how Web3 firms are beginning to bridge decentralized innovation with regulated financial infrastructure. As the company progresses through the remaining steps toward full permission, its entry into ADGM's regulated landscape is likely to be closely monitored across the blockchain investment community, especially among institutions seeking compliant exposure to Web3-native opportunities.